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Finance

Brazil animal feed output to drop after bird flu outbreak

Published by Global Banking and Finance Review

Posted on September 10, 2025

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By Roberto Samora

SAO PAULO (Reuters) -The Brazilian animal feed industry will produce slightly less than expected in 2025 after a case of bird flu in the country affected chicken exports and curtailed demand, industry group Sindiracoes said on Wednesday.

The group representing feed companies now estimates that animal feed and supplement production in Brazil will reach 93.7 million tons this year, compared to a projection of 94 million released in May, shortly before the first case of bird flu was recorded on a commercial chicken farm in Southern Brazil.

Brazil's poultry industry is the main consumer of locally processed feed.

"Demand was mainly impacted by the pace of (chicken) exports, which were restricted due to embargoes following an avian influenza outbreak," Ariovaldo Zani, the head of Sindiracoes, said.

Chicken exports from Brazil, the world's largest supplier, could fall by as much as 2% in 2025, to 5.2 million metric tons, reflecting trade restrictions triggered by the outbreak, which the government controlled in a month.

Although most importers have already lifted bans, top buyer China has not yet resumed buying Brazilian poultry products.

Total animal feed production is still expected to increase by 2.9% year-over-year, Sindiracoes said, noting a drop in demand from the poultry industry will be partially offset by the additional demand from the beef industry.

Despite the effect of Brazil's bird flu outbreak, demand from the poultry industry reached 18.9 million tons of feed in the first half of 2025, with marginal growth from the same period a year ago, Sindiracoes said.

(Reporting by Roberto SamoraWriting by Ana Mano; Editing by Bill Berkrot)